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We will search for companies/industries who are making big investments in IoT/connected devices, and roles of decision makers overseeing these initiatives.
As of 2016, manufacturing was the largest industry investing in IoT/connected devices, followed by transportation and utilities. In the coming years, industry experts predict healthcare, consumer electronics, and automotive will invest heavily in IoT/connected devices. Below is a review of the top industries investing in IoT/connected devices (as it relates to revenue), as well as a look at the top companies (as it relates to products). Please note, no specific key decision makers could be found as they relate to just IoT. I’ve included executives within each company that lead various departments that are currently utilizing or projected to utilize IoT technology, and based on their high ranking, would likely be a decision maker.
Top INDUSTRIES
Investments in IoT/connected devices fall into two categories: inward facing (“optimizing systems and saving costs”) and outward facing (making improvements in “customer usage”). Manufacturers use IoT in internal investment as a way to “optimize their processes, monitor equipment, and do preventative and predictive maintenance of that equipment.” In 2016, internal investments in IoT/connected devices (across all industries) was $102.5 billion.
For outward-facing investments, manufacturers are using IoT/connected devices to look at how the consumer is using the technology and look for patterns in how it is used, in order to improve existing technology, as well as create new innovations.
Within the transportation industry, freight monitoring is driving the highest IoT spend ($55.9 billion in 2016). Freight and public transportation vehicles can use IoT to utilize sensors on their equipment that helps alert the need for maintenance, as well as “optimize fuel consumption.” The devices can also monitor a driver’s operating and driving behavior to assist in insurance matters. Further, some transportation vehicles have digital data recorders that take videos when the vehicle is driving at extreme speeds, in order to help determine accidents should they occur.
Within utilities, IoT investments are largest when it comes to Smart Grids for gas and electricity ($57.8 billion in 2016). A Smart Grid is used to give electricity meters power, so batteries are not a concern. Further, you don’t have to pay someone to read the meter, as the Smart Grid will do it for you. These are used in the United States and in many European countries.
Oil and gas are also utilizing IoT/connected devices by installing monitoring pressure gages on pipes and valves to prevent revenue loss from a pump breakdown. Power generating plants utilize IoT to monitor their equipment with “predictive maintenance and safety oversight.”
INDUSTRIES ON THE RISE
HEALTHCARE
Use for IoT/connected devices is expansive in the healthcare industry. It can be used in medical machines for sharing an image with a patient’s other doctors, for “monitoring and troubleshooting problems with equipment”, and for location systems that can track equipment and medicine dispensation in real-time. Further, strides are being made to use IoT/connected devices for “implants, prosthetics, and wearables…to stream data back to medical providers.”
While the ability to connect devices, such as a pacemaker, to the internet so the doctor can see real-time data and potentially improve diagnosis is goal in healthcare, there are security concerns as it relates to cyber-attacks. Technologists are working to incorporate software security into the design of the connected device.
CONSUMER ELECTRONICS AND AUTOMOTIVE
Consumer purchases are the fourth largest industry (as of 2016) in investing in IoT, and are predicted to be the third-largest industry by 2020. Home automation devices, such as Amazon Alexa and Google Home, have contributed to the rise and predicted success of consumer electronics utilizing IoT.
However, the growth will be slow, as consumers don’t usually decide to purchase a device unless their previous one breaks down (i.e. someone isn’t going to buy a new fridge that is compatible with the internet unless their current fridge dies).
Cars are also investing heavily in IoT/connected devices, and are predicted to grow. Already with General Motors, every new car they produce has IoT capabilities that “allow drivers to gain diagnostic information and connect to the internet.”
top companies
Honeywell is focusing in IIoT (Industrial Internet of Things) in order to integrate digital technology into manufacturing. A survey of business decision makers showed that 84% think Honeywell would benefit from IIoT in numerous ways.
Key Decision Makers:
Cisco has invested in IoT to create products in utilities (Smart Grids), oil and gas, aviation, maritime, rail and roadways, and mass transit. They are also able to monitor and control “energy distribution, management, and application enablement, embedded networks, an IoT enabled cyber security products.” Further, Cisco predicts that IoT will be in over 50 billion devices by 2020, and they intend to remain a leader in the industry.
Key Decision Makers:
GE
In 2015, GE created a parallel organization called General Electric Digital, which specializes in predictive maintenance of IoT. Further, they have a platform called PaaS (platform-as-a-service) called Predix that will integrate machine data with cloud databases. They’ve already provided IoT technology for hospitals, utility companies, and airline fuel management.
Key Decision Makers:
Sue Siegel, Chief Innovation Officer and GEO of GE Ventures
Alphabet is the parent company of Google, and is the leader in IoT/connected device investments. Google has Nest, a home monitoring system, that can work with your house’s “smoke detectors, thermostat, and surveillance cameras.” Further, they’ve been investing in IoT for their new product, Google Home, which is a home automation assistant.
Key Decision Makers:
Amazon is also a leading company, having recently launched their home automation assistant Echo. Utilizing Alex (the home connectivity technology within Echo), consumers have a device that is ready to answer their questions since they are “always listening.”
Key Decision Makers:
Apple boasts wearable technology in the form of their Apple Watch, which allows users view health monitoring metrics, phone calls, text messages, and more on their watch. Further, Apple owns a patent on an IoT technology called “local device awareness”, which is the “relationship between close-range devices.”
Key Decision Makers:
Hitachi launched a new entity called Hitachi Vantara in 2017 that is an IoT “platform for during data into intelligent action.” The platform is designed to manage the life cycle of a business asset, including “avatars (digital twins), analytics from machines, and human data and design tools.”
Key Decision Makers:
Koji Tanaka, CEO of Nuclear Energy Business Unit (Building Systems, Railway Systems, Urban Solutions)
SUMMARY
Top industries investing in IoT/connected devices include manufacturing, transportation, and utilities, and up-and-coming industries include healthcare, consumer electronics, and automotive. Honeywell is a top company as they focus on IIoT to integrate digital technology into their manufacturing, and Apple, Google and Amazon are both focusing on wearable IoT technologies and digital home assistants (i.e. Apple Watch, Google Home, and Echo). Cisco is investing in numerous industries (oil and gas, utilities, aviation and mass transit), while GE is working in integrating IoT machine data with cloud technology. Hitachi has an entity dedicated to IoT designed to manage business assets, including analytics, human data, and design tools.